Issue of Jurisdiction in relation to Challenge and Execution of

Arbitral Award

An arbitration award or arbitral award is a determination on the merits

by an arbitration tribunal, which include interim awards. Domestic
awards are governed by Part I whereas foreign awards are governed by
part II of the Arbitration and Conciliation Act of India. The arbitrator’s
final decision on the case is called the “award.” Once the arbitrator
decides that all of the parties’ evidence and arguments have been
presented, the arbitrator will close the hearings. This means no more
evidence or arguments will be allowed. Although arbitral awards may be
subject to being challenge but the grounds of challenge available
against arbitral awards are limited. The award given by the arbitrator is
equivalent to a decree of a court of law and the same can be executed
directly, without making it a decree of the court. Now, the question
arises are whether Jurisdiction lies where asset are located?
Applicability of the Civil Procedure Code to matters before the Civil
Courts under the Arbitration and Conciliation Act, 1996?

Applicability of CPC:- Hon’ble Supreme Court of India, in the case of

ITI Ltd. v. Siemens Public Communications Network Ltd (2002) 5
SCC 510 while dealing with Section 5 and Section 36 of the Act and
also Section 115 CPC, has laid down the law that the applicability of
CPC having not been expressly prohibited in the Act, the High Court’s
power under Section 115 CPC, against an order made by the civil court,
in an appeal preferred under Section 37 of the Act, is not barred.

Jurisdiction of Court and Challenge to Awards:- Seven Judges

Bench of Supreme Court in the matter of S.B.P. & Co. Vs. Patel
Engineering Ltd. & Ors. [(2005) 8 SCC 618], while examining relative
scope of Ss.11(6) and 8 of the Act, per majority held that power
exercised by the Chief Justice of High Court or CJI under Section 11(6)
of the Act is not an administrative power but it is a judicial power by
overruling its earlier decision in Konkan Railway Corporation Ltd. & Anr.
v. Rani Construction Pvt. Ltd. [(2000) 2 SCC 388]

Question is which District Court has the jurisdiction to decide the

petition u/s 34 of Arbitration & Conciliation Act 1996 with regard to the
challenge to Arbitral Award? It was held by Rajasthan High Court in
Indian Potash Ltd vs Bohra Industries Ltd. And Ors (S.B. Civil
Revision No. 55/2016) Rajasthan High Court Jodhpur once Delhi
High Court has appointed sole arbitrator to resolve the dispute between
parties by exercising its judicial power under Section 11(6) of the Act
and though the same was concurred by Rajasthan High Court but it
cannot ipso facto confer jurisdiction on the subordinate Courts of
Rajasthan to exercise power under Section 34 of the Act. Participation
of the respondent in arbitral proceedings conducted by the Tribunal at
New Delhi without any demure is yet another significant circumstance to
tone down the ambitious plea of respondent that learned Court below is
clothed with territorial jurisdiction to entertain its application under
Section 34 of the Act.

Jurisdiction and Execution of Awards:-  Previously under Arbitration

Act, 1940, which required an award made to be filed in Court and a
decree to be passed thereon whereupon it would be executable.
However same was amended in Arbitration & Conciliation Act 1996. But
Delhi High Court, Kerala High Court, Madras High Court, Rajasthan
High Court, Allahabad High Court, Punjab & Haryana High Court and
Karnataka High Court were of the opinion: “An award is to be enforced
in accordance with the provisions of the said Code in the same manner
as if it were a decree of the Court as per Section 36 of the said Act
does not imply that the award is a decree of a particular court and it is
only a fiction. Thus, the award can be filed for execution before the
court where the assets of the judgment debtor are located.”
However, the Madhya Pradesh and Himachal Pradesh High Courts
held:“The transfer of decree should first be obtained before filing the
execution petition before the Court where the assets are located.”
After discussing various provisions of the Act and the various orders of
the High Courts at length, Apex court on conjoint reading of with Code
of Civil Procedure with Arbitration Act 1996, it was held in Sundaram
Finance Limited v. Abdul Samad, 2018 SCC OnLine SC 121 that
enforcement of an award through its execution can be filed anywhere in
the country where such decree can be executed and there is no
requirement for obtaining a transfer of the decree from the Court, which
would have jurisdiction over the arbitral proceedings.